G.S.T.

August 5, 2016 11:31 am

The GST (Goods Service Tax) Bill is actually and virtually a Congress Bill that had stalled it during the 15th Lok Sabha and could not get it passed due to negative attitude of the then Opposition the BJP. What a poetic justice that in the 16th Lok Sabha the BJP came into power and Congress pushed down to Opposition.

Now the BJP moved the GST Bill and most humbly and repeatedly requested the Congress to extend support to pass it. This time the Congress with positive opposition and gracefully helped the BJP Government to get it through the Parliament with clearance by the Rajya Sabha. The Lok Sabha had already passed it in earlier session. The passage of the Bill is a moral victory of the Congress and moral defect of the BJP.

The Bill that it had stalled in last Lok Sabha had to get it passed with Congress support. It is moral lesson to BJP also that in a parliamentary system negative politics and opposition are counter-productive. The main hurdle in the Bill is over now there are certain procedural and legislative support from the State Assembly and also required to fulfill constitutional obligations.

The Bill is likely to be enforced from April 2017. It is aimed to consolidating varies taxes of the Centre and States into single tax to create a national market and national economy. It was a rare gesture in the Rajya Sabha that 203 members voted in favour and none against the Bill. In the ongoing tax system 80 per cent goods carry 12.5 per cent Central Government Excise Duty and more than 50 per cent item carry 14.5 per cent VAT and Sales Tax at the State Government level.

The former Union Finance Minister Mr.P.Chidambaram who tried his best to get the GST Bill during his tenure as Minister in 15th House cautioned the Government that Tax slab must not go beyond 18 per cent otherwise it would lead to tax evasion. The rates and slabs of the taxes would be decided by a committee comprising the States and the Central Government.

The Union Finance Minister Mr.Arun Jaitley foresee that the new system will give boost the Gross Domestic Produce. Initially prices of some items and services will register an increase. The spirit of Members of Parliament and the different political parties give a hope or remote signal that in the coming days the Parliament will function in harmony and session will not be wasted in discard.